Emotional Capitol Protests Result In Arrests

The Capitol grounds and building were witness this week to some of the most consistent and highly-charged protests in recent years. From the Governor’s plan to eliminate the income tax exemption for public and private pensions, to the emergency financial manager reform provision allowing for the removal of local-elected officials, to the overall executive budget recommendations, organized labor, seniors and college students exercised their constitutional right in protest both in and outside the historic building.

The protests came to a head Wednesday when, after several hours of demonstrations without problems, a group of younger protestors gathered in the first floor Rotunda at the Capitol’s 5:30PM closing time. After nearly an hour of negotiations among themselves and with State troopers, several protestors decided to stay, sitting on the floor and locking arms.

Finally, at just shy of 8:00PM, troopers handcuffed the five remaining protestors without incident, leading them out of the building. The only reported danger and physical altercation came when a small group of protestors remaining in the locked Capitol attempted to let in others from the east lawn and one protestor was apprehended attempting to break into the locked building with a weapon.

State troopers were clear in stating that an estimated 3,000 plus citizens protested in a respectful manner on Wednesday, and that those taken into custody had agendas differing from those gathering in organized demonstration.

posted by PAA Online , Friday, March 18, 2011 12:20 PM
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Emergency Financial Manager Reform Measures Signed

Although State Treasurer Andy Dillon had hoped the reform would be in place by February 28^th, the Legislature came close as Governor Rick Snyder signed six bills into law Wednesday, March 16, representing significant reform to the laws governing emergency financial managers (EFM) appointed for school districts and municipalities.

The main bill, House Bill 4214, as well as the other five bills in the package (House Bills 4216, 4217, 4218 and Senate Bills 157, 158) became Public Acts 4 – 9 as Governor Snyder signed the measures amid ongoing protests from union leaders and surrounded by Dillon, Lt. Governor Brian Calley, Senator Phil Pavlov (R-St. Clair), Representative Mark Ouimet (R-Ann Arbor) and Representative Al Pscholka (R-Stevenson).

Prior to the reform, fourteen “triggers” existed to warn state officials of significant financial problems before an emergency financial manager would be put in place. Under the new law, eighteen triggers exist. Once appointed, the EFM would have the authority to, among other things, retract existing labor contracts – one of the most controversial aspect of the reform.

Proponents suggest that one of the most positive aspects of the reform is the fact that local units are now implementing their own plans for rectifying fiscal problems to avoid falling under the authority of a gubernatorially appointed EFM.

posted by PAA Online , 12:19 PM
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NITC Topic Of Senate Appropriations Meeting

The Senate Appropriations Transportation Subcommittee convened Wednesday to hear testimony from Lt. Governor Brian Calley regarding the Administration’s intention to utilize $50 million in Canadian money for the Fiscal Year (FY) 2012 transportation budget.

The Lt. Governor told the panel that the nearly $1 billion expected to be spent by a public-private partnership in constructing the New International Trade Crossing from Detroit to Windsor could be used to qualify for federal highway matching funds for the state. The Administration is still working out the details on the needed legislation to enable the partnership and ensure the matching funds; however, the bill could be introduced as early as this month.

The Canadian government has offered a total of $550 million for the project; however, at least one Senator is still not sold. Senator John Pappageorge (R-Troy) indicated that, if required to make the choice today, he is more inclined to include the $50 million conditionally offered by the Ambassador Bridge in toll credits to apply to Michigan’s federal match requirement. $200 million in federal transportation dollars would be lost in 2012 if the Canadian money is not utilized, according to Mr. Calley.

Also at issue is the requirement for Michigan to meet the minimum maintenance standards to use toll credits to qualify for matching funds – standards the state failed to meet from 2003 to 2007 and again in 2009.

posted by PAA Online , 12:19 PM
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Deal Struck On Item Pricing Repeal – Headed To Governor’s Desk

After two previous unsuccessful attempts, the Senate was finally able to secure immediate effort (IE) on House Bill 4158 Thursday, following an amendment to delay the measure’s effective date to September 1, 2011. The legislation, sponsored by Representative Lisa Posthumus Lyons (R-Alto) eliminates the requirement for retailers to individually mark items with price tags.

The Senate passed the legislation Tuesday, but had since been unable to secure IE as one Republican Senator voted with the Democrats, resulting in a total of 25, one-short of the required two-thirds majority. Without the eventual passage of the IE motion, the legislation would not have gone into effect until April 1^st of 2012.

In an unexpected twist, the amendment delaying the effective date to September 1 resulted in five additional Democratic votes for IE, including Leader Gretchen Whitmer (D-East Lansing). The House concurred in the Senate changes later Thursday.

posted by PAA Online , 12:11 PM
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Tax Restructuring Remains Hot Topic

The mixed-bag of reactions to Governor Rick Snyder’s proposal for revamping Michigan’s tax structure continued this week. The House Committee on Tax Policy continued hearings on House Bill 4361 and 4362, legislation introduced by Committee Chair Representative Jud Gilbert (R-Algonac) encompassing the Governor’s plan to eliminate the MBT, implement a 6 percent corporate net income tax on C-corporations only and flatten the individual income tax base through the elimination of credits and exemptions.

Individuals representing retirees, including retired state employees that just took the early-out incentive package, explained to the panel that tax-free pensions had been promised and plans were made accordingly. Throwing-out ideas such as increasing liquor or tobacco taxes as alternatives, those testifying claimed that the estimated $612 million the elimination of the pension exemption would create is not worth it, given the exchange for an 86-percent business tax cut. The pension issue was also protested Tuesday by an estimated 500 seniors organized by AARP.

The Committee also heard from author and newspaper columnist Mitch Albom with a plan to keep the film production incentives at a level keeping Michigan competitive with other states, while scaling back the cost and associated impact on state revenue. The Governor’s plan would cap the incentives at $25 million per year, a level Albom claimed would reduce the incentive’s positive impact on the perception of Michigan.

Business groups continued to trumpet their support for the Snyder Administration’s proposal. The Michigan Association of Homebuilders lent their support for the Governor’s overall budget recommendations, including the taxation aspects. Earlier in the debate the Michigan Chamber of Commerce, Small Business Association of Michigan, and The National Association of Small Business all announced support for the new business tax.

While the Senate Republican Caucus continues to debate the issues in order to develop its own plan, expected before the end of March (a Senate Republican Caucus retreat is scheduled for March 22^nd), some business groups caution against tinkering with it too much. Rob Fowler and Doug Rothwell, President and CEO of the Small Business Association of Michigan (SBAM) and Business Leaders for Michigan, respectively, explained the proposals overall fit with the budget recommendations and touted the plan’s move to make Michigan’s tax structure more competitive – all the while not closing the door on possible alternative plans from the Senate.

posted by PAA Online , 12:10 PM
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Auditor General Report On Corrections' Prescription Costs Paints Ugly Picture

A joint hearing of the House and Senate Appropriations subcommittees on the Corrections budget discussed a Michigan Auditor General report on a performance audit of the Department of Corrections’ prescription drug costs for a nearly three-year period ending July 31, 2010. The scathing report found, for example, that the Department of Corrections spent an average of $22.34 per month per prisoner, more than three-times the total of next closest state.

Acting Department of Corrections Director Richard McKeon and other Department executives made no excuses for the findings, reporting only their plans for further investigation into how pharmaceutical costs spiraled out of control, promising accountability. Auditors reported an estimated savings potential of at least $16.5 million.

The most significant finding in the report, issued by Auditor General Thomas McTavish, CPA, last Friday, was the Department’s failure to implement a method of reducing higher-cost anti-psychotic medications with similar, generic versions. According to the report, the elimination of just one widely-used medication would have saved $8.5 million per year.

Both Republican and Democratic members of the House and Senate panels took it relatively easy on Department officials while making clear both their collective disappointment and high expectation for future monitoring and accountability.

posted by PAA Online , 12:07 PM
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PAAdvisory BRIEFS

Tea Party Candidate Scam in Oakland County has Lansing Roots

After issuing felon charges against former Oakland County Democratic Party executives Michael McGuinness and Jason Bauer in connection with placing false Tea Party candidates on the ballot without the individuals’ knowledge, Oakland County Prosecutor Jessica Cooper and Sheriff Michael Bouchard Wednesday announced the scam originated with someone in Lansing. Since the grand jury investigation continues, the identity of the Lansing-based thought-originator cannot yet be revealed.

MEA Talking Strike

The Michigan Education Association (MEA) has reportedly asked its 1,100 locals to authorize action “up to and including a work stoppage” in a letter from MEA President Iris Salter. Teacher strikes have been illegal in Michigan since 1947; however, the MEA views many of the reforms being pursued by Senate and House Republicans and Governor Snyder as a legislative crisis.

Dems Seek Constitutional Protection for Collective Bargaining

Senate Democratic Leader Gretchen Whitmer (D-East Lansing) was joined by all 11 of her Senate Democratic colleagues in introducing Senate Joint Resolution I, proposing to amend the Michigan Constitution by adding a new Section 28 to Article I, stating, “"Every person shall have the right to form, join, or assist labor organizations and to bargain collectively through representatives chosen by the members of the labor organizations as to wages, benefits, and conditions of employment." House Democratic Leader Representative Rick Hammel (D-Mt. Morris) stated that he will be introducing an identical measure in the House, expected to be co-sponsored by all 47 Democratic House members.

Measure Moves to Prevent Healthcare Benefits for Live-in Partners

Senate Concurrent Resolution 9, sponsored by Senator Mark Jansen (R-Gaines Township), moved from the House Oversight, Elections & Ethics Committee to the House floor Tuesday. The measure would reject the Civil Service Commission’s (CSC) ruling to allow unrelated, adult, cohabitants to qualify for state employee’s healthcare benefits; however, requiring a two-thirds majority in both legislative chambers (the Senate did so last week) means SCR 9 has an uncertain future as 11 Democrats would be required to join the 63 House Republicans in voting “yes.”

House Commerce Committee Moves PLA Ban

The House Commerce Committee approved House Bill 4287 Tuesday, legislation to prohibit the use of project labor agreements (PLAs) on projects involving taxpayer funds. The measure, sponsored by Representative Joe Haveman (R-Holland) was passed on a straight party-line vote (12-7) and now moves to the House floor. Senate Bill 165, sponsored by Senator John Moolenaar (R-Midland) is a similar measure awaiting action on the Senate floor.

posted by PAA Online , 11:52 AM
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